Summary
- The House approved the GENIUS Act, establishing the first federal stablecoin regulatory framework.
- President Trump signed the GENIUS Act on July 18, 2025.
- The Act mandates 1:1 reserve backing and monthly audited disclosures for stablecoins.
- Creates dual federal-state licensing system based on issuer size and regulation.
- The bill aims to protect consumers, ensure transparency, and maintain U.S. dollar dominance.
Two GOP-led legislation pertaining to digital assets were approved by the U.S. House of Representatives on July 17. The president signed one of the proposals into law on July 18, while the other bill will now be considered by the U.S. Senate.
The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, S. 1582, was approved by the House 308-122 and signed into law by Trump the following day.
U.S. Senator Bill Hagerty (R-TN) presented S. 1582 on May 1st, which creates a legislative framework for payment stablecoins—digital assets that an issuer is required to redeem for a certain amount.
“This legislation protects consumers, cements the U.S. dollar as the world’s reserve currency, and promotes the next generation of Web3 businesses here in the United States,”
said U.S. Rep. Bryan Steil (R-WI), who voted to pass the S. 1582.
“By securing U.S. leadership in blockchain technology, we ensure that our economy will continue to dominate the financial services sector for years to come.”
The bill states that, with some exclusions and safe harbors, only authorized issuers are allowed to create payment stablecoins for use by Americans. Permitted issuers have to be either state-qualified payment stablecoin issuers, federal-qualified nonbank payment stablecoin issuers, or subsidiaries of insured depository institutions.
The relevant federal or state authority must oversee permitted issuers. According to the Congressional Record bill summary, authorized issuers have the option of either federal or state regulation; however, state regulation is only available to those with a stablecoin issuance of $10 billion or less.
S. 1582, according to Rep. Steil, is the outcome of months of cooperation between the Senate and House on stablecoin legislation.
The STABLE Act, the House companion measure to S. 1582, was presented in March after he and U.S. House Financial Services Chairman French Hill (R-AR) introduced a discussion draft in February that established a framework for the creation and operation of dollar-denominated payment stablecoins in the United States.
“President Trump’s signature on the GENIUS Act marks the turning point in years of collaboration between Congress, the Executive Branch, and stakeholders,”
Rep. Hill said.
“This is a historic day for American innovation and consumer protection as payment stablecoin legislation is now law.
Our efforts don’t stop here, and I’ll continue to work with President Trump and the Senate to ensure critical market structure legislation will reach the president’s desk,”
he added.
Rep. Hill's bipartisan Digital Asset Market Clarity Act of 2025, also known as the CLARITY Act of 2025, H.R. 3633, was also approved by the House last week by a vote of 294–134. The bill would create a regulatory framework for digital commodities, which the bill defines as digital assets that depend on a blockchain to be valuable.
Along with eight original cosponsors, including U.S. Representatives Glenn “GT” Thompson (R-PA), Tom Emmer (R-MN), Dusty Johnson (R-SD), and Angie Craig (D-MN), as well as Rep. Hill, H.R. 3633 was sponsored on May 29. If yearly sales are below a specific threshold and other conditions are satisfied, the bill would exclude digital commodities on established blockchains (as well as those on blockchains anticipated to develop within specific periods) from Securities and Exchange Commission (SEC) registration requirements.
According to the Congressional Record bill description, the plan would also provide the SEC authority over transactions and activities involving digital commodities that are carried out by national securities exchanges and by specific brokers and dealers on alternative trading platforms.
“The House passed landmark legislation that establishes clear rules of the road by creating a functional regulatory framework for digital assets,”
Rep. Hill said.
“This is the pivotal moment for American innovation and a critical step forward in protecting consumers and investors alike.”
Rep. Johnson pointed out that if America doesn’t lead in digital asset development, the nation risks losing innovation to Europe or China.
“Our CLARITY Act puts in place a strong, common-sense framework to give developers and consumers the certainty they need to thrive in the United States,”
said Rep. Johnson.
“I’m grateful for the work of my colleagues who helped get this bill across the finish line in the House and I am hopeful the Senate acts soon.”
“This bill delivers on President Trump’s goal of making the United States the crypto capital of the world by providing the regulatory certainty needed to foster innovation, safeguard consumers, and ensure America leads in the next generation of financial technology,”
added Rep. Thompson.
What are the key aspects of the clarity act?
The Commodity Futures Trading Commission (CFTC) will generally regulate digital commodity transactions, including exchanges, brokers, and dealers .
Digital commodities on "mature blockchains" may be exempt from Securities and Exchange Commission (SEC) registration requirements under certain conditions. The SEC will retain jurisdiction over digital commodity activities involving certain brokers, dealers, and alternative trading systems .
Digital commodity exchanges, brokers, and dealers will be subject to the Bank Secrecy Act for anti-money laundering purposes .
The bill was sponsored by Rep. J. French Hill (R-AR-2) and received bipartisan support in the House .